Wellington St – Mini Block of 2 x 1 Bed Flats (Redevelopment)
Wellington Street was a rare find: A Freehold block of two flats, owned by the same landlord since 1996. It came up in a online auction in December 2023. The original buyer had bid as high as £160,000 but then pulled out. The seller was 80 years old and highly motivated. Mike moved quickly and secured it for an incredible £134,000. The best deals are often found post auction when sellers have no other options.
The flats were in a very poor condition, damp, tired and needing work, but the location was outstanding, just 50 metres from Nottingham’s main shopping centre and effectively it is the first residential street outside the city centre. Rental demand always is excellent in this area given the prime letting location.
Flat 1 was refurbished immediately after purchase, between December 2023 and January 2024. The damp issue was dealt with properly using a full membrane system. It was not cheap, but permanent solutions are always preferable to ensure tenant comfort. The flat was then tidied up, repainted and furnished.
Flat 2 was still occupied by a long term elderly tenant, who was retained out of respect for his circumstances. He chose to move on in late 2024. Once vacant, the flat underwent a full refurbishment in late 2024, including a new kitchen and bathroom, completely transforming the unit. The rent increased from £525 pcm to £850 pcm.
The Result: +£32k equity & 12% Yield
Both flats now rent for £850 pcm with zero voids, producing £20,400 per year. The project has been since valued at £200,000, delivering a clean + £32,000 equity uplift after all build costs were accounted for and over 12% yield on total spend. For a city centre location with great rental demand, this was an excellent high yield cash deal in a the post Mini Budget market where expensive mortgage borrowing makes far less sense.
